The Performance and Reliability of a RFID Cycle-Count – A Quantitative Approach from Fashion Retail

In recent years, several retailers gained experience with the implementation and use of radio-frequency identification (RFID). Although extensive benefits through the use of RFID have been discussed in academia and practice for many years, strategic approaches to reach the promised targets still are largely unexplored. To support practitioners with using RFID in retailing, the reliability of data generated by RFID in-store processes has to be investigated. As a starting point, we compare in the present study the quality of a RFID cycle-count to a physically conducted count. We collected data from a real-world implementation and completed parallel counts in 9 RFID pilot stores at a global fashion retailer. Our results based on an item-level error investigation show, that the error rate of a RFID cycle-count nearly is as low as the error rate of a physical conducted count. As a consequence for further research, more reliable data collected in a cycle-count lead to a better stock accuracy, more effective in-store replenishment processes and less stock-out situations

Empirical Evidence of RFID Impacts on Supply Chain Performance

Purpose - The purpose of this paper is to investigate the actual benefits of radio frequency identification (RFID) on supply chain performance through the empirical evidence. Design/methodology/approach - The research reviews and classifies the existing quantitative empirical evidence of RFID on supply chain performance. The evidence is classified by process (operational or managerial) and for each process by effect (automational, informational, and transformational). Findings - The empirical evidence shows that the major effects from the implementation of RFID are automational effects on operational processes followed by informational effects on managerial processes. The RFID implementation has not reached transformational level on either operational or managerial processes. RFID has an automational effect on operational processes through inventory control and efficiency improvements. An informational effect for managerial processes is observed for improved decision quality, production control and the effectiveness of retail sales and promotions coordination. In addition, a three-stage model is proposed to explain the effects of RFID on the supply chain. Research limitations/implications - Limitations of this research include the use of secondary sources and the lack of consistency in performance measure definitions. Future research could focus on detailed case studies that investigate cross-functional applications across the organization and the supply chain. Practical implications - For managers, the empirical evidence presented can help them identify implementation areas where RFID can have the greatest impact. The data can be used to build the business case for RFID and therefore better estimate ROI and the payback period. Originality/value - This research fills a void in the literature by providing practitioners and researchers with a better understanding of the quantitative benefits of RFID in the supply chain

Cost-Benefit Sharing in Cross-Company RFID Applications: A Case Study Approach

Although the highest potential for RFID in logistics is expected to be realized in cross-company applications, the status quo in the RFID project landscape is dominated by isolated solutions in specific fields. Reasons for this phenomenon are the high investment costs and the difficulty in assessing the benefits during the run-up phase. In network technologies such as RFID, the benefits depend on the spread of the technology in the network. A high discrepancy may result between the occurring costs and the resulting benefits for each of the network partners. This unequal distribution puts the success of the application at risk. To counter this trend, a balancing of costs and benefits should be considered. The research question of this paper is how these costs and benefits should be distributed among which participants. To develop a practical, relevant solution, we use an empirical research method based on an exploratory case study

Developing a supply chain framework for omni-channel presence: retailer omni-channel knowledge framework

Confidential until 18. May 201

The Influence of Education and Experience upon Contextual and Task Performance in Warehouse Operations

Supply chain workers make observable, preventable errors while completing their assigned tasks in the shipping process. Previous research has indicated that individuals with a greater grasp of their work and better system knowledge are less likely to commit interpretation errors. We believe worker-performance may, likewise, be affected by an individuals knowledge of why and where they fit into a larger system defined as mission knowledge. To assess our research objectives, we conduct a controlled experiment with 100 workers in the Air Force supply career field to discern how mission clarity, that is, education, experience and subject characteristics affect pick and pack errors in simulated warehouse order fulfillment tasks. Results indicate that participants who received the experience treatment committed fewer errors, resulting in increased task performance

Augmented reality in support of Industry 4.0—Implementation challenges and success factors

Industrial augmented reality (AR) is an integral part of Industry 4.0 concepts, as it enables workers to access digital information and overlay that information with the physical world. While not being broadly adopted in some applications, the compound annual growth rate of the industrial AR market is projected to grow rapidly. Hence, it is important to understand the issues arising from implementation of AR in industry. This study identifies critical success factors and challenges for industrial AR implementation projects, based on an industry survey. The broadly used technology, organisation, environment (TOE) framework is used as a theoretical basis for the quantitative part of the questionnaire. A complementary qualitative part is used to underpin and extend the findings. It is found that, while technological aspects are of importance, organisational issues are more relevant for industry, which has not been reflected to the same extent in literature.University of Cambridg

Selection process of auto-ID technology in warehouse management: A Delphi study

This thesis was submitted for the degree of Doctor of philosophy and awarded by Brunel UniversityIn a supply chain, a warehouse is a crucial component for linking all chain parties. Automatic identification and data capture (auto-ID) technology, e.g. RFID and barcodes are among the essential technologies in the 21st century knowledge-based economy. Selecting an auto-ID technology is a long term investment and it contributes to improving operational efficiency, achieving cost savings and creating opportunities for higher revenues. The interest in auto-ID research for warehouse management is rather stagnant and relatively small in comparison to other research domains such as transport, logistics and supply chain. However, although there are some previous studies that explored factors for the auto-ID selection decision in a warehouse environment, those factors (e.g., operational factors) have been examined separately and researchers have paid no attention to all key factors that may potentially affect this decision. In fact, yet there is no comprehensive framework in the literature that comprehensively investigates the critical factors influencing the auto-ID selection decision and how the factors should be combined to produce a successful auto-ID selection process in warehouse management. Therefore, the main aim of this research is to investigate empirically the auto-ID technology-selection process and to determine the key factors that influence decision makers when selecting auto-ID technology in the warehouse environment. This research is preceded by a comprehensive and systematic review of the relevant literature to identify the set of factors that may affect the technology selection decision. The Technology-Organisation-Environment (TOE) framework has been used as lens to categorise the identified factors (Tornatzky & Fleischer, 1990). Data were collected by conducting first a modified (mixed-method) two-round Delphi study with a worldwide panel of experts (107) including academics, industry practitioners and consultants in auto-ID technologies. The results of the Delphi study were then verified via follow-up interviews, both face-to-face and telephone, carried out with 19 experts across the world. This research in nature is positivist, exploratory/descriptive, deductive/inductive and quantitative/qualitative. The quantitative data were analysed using the statistical package for social sciences, SPSS V.18, while the qualitative data of the Delphi study and the interviews were analysed manually using quantitative content analysis approach and thematic content analysis approach respectively. The findings of this research are reported on the motivations/reasons of warehouses in seeking to use auto-ID technologies, the challenges in making an auto-ID decision, the recommendations to address the challenges, the key steps that should be followed in making auto-ID selection decision, the key factors and their relative importance that influence auto-ID selection decision in a warehouse. The results of the Delphi study show that the six major factors affecting the auto-ID selection decision in warehouse management are: organisational, operational, structural, resources, external environmental and technological factors (in decreasing order of importance). In addition, 54 key sub-factors have been identified from the list of each of the major factors and ranked in decreasing order of the importance mean scores. However, the importance of these factors depends on the objectives and strategic motivations of warehouse; size of warehouse; type of business; nature of business environment; sectors; market types; products and countries. Based on the Delphi study and the interviews findings, a comprehensive multi-stage framework for auto-ID technology selection process has been developed. This research indicates that the selection process is complex and needs support and closer collaboration from all participants involved in the process such as the IT team, top management, warehouse manager, functional managers, experts, stockholders and vendors. Moreover, warehouse managers should have this process for collaboration before adopting the technology in order to reduce the high risks involved and achieve successful implementation. This research makes several contributions for both academic and practitioners with auto-ID selection in a warehouse environment. Academically, it provides a holistic multi-stage framework that explains the critical issues within the decision making process of auto-ID technology in warehouse management. Moreover, it contributes to the body of auto-ID and warehouse management literature by synthesising the literature on key dimensions of auto-ID (RFID/barcode) selection decision in the warehouse field. This research also provides a theoretical basis upon which future research on auto-ID selection and implementation can be built. Practically, the findings provide valuable insights for warehouse managers and executives associated with auto-ID selection and advance their understanding of the issues involved in the technology selection process that need to be considered.Damascus University, Syria and The British Council, Mancheste

Exploring an open-loop RFID implementation in the automotive industry

This master thesis has been conducted to investigate why and how Plastal in Arendal (PAGO), Sweden have implemented RFID technology. RFID technology has become very popular in recent years (1). It is said to have potential to increase the level of automation (2), reduce the labor levels and to improve the supply chain in areas such as inventory, visibility etc. (3) (see chapter 1.2.1 for more examples). PAGO is one of the first major companies in Sweden that have implemented an open-loop RFID system (see chapter 1.2.3.2) that tag on item level. They are also a supplier of injection-molded and surface-treated plastic to the automotive industry; an industry that is characterized by high level of automation and fierce competition. It is thus very interesting to investigate why and how PAGO implemented RFID technology; did any problem arise? How did they solve them? What where their underlying reasons? To minimize the errors caused by manual updating – resulting in incorrect storage levels – PAGO have implemented a RFID system. The system has 24 RFID gates, divided into seven places: injection molding, entry and exit point of high storage 1, paint shop, entry and exit point of high storage 2 and after the sequencing process. The RFID system will help reduce the effects of entering the wrong quantity at the entry and exit point for high storage 1 and 2. It will also reduce the effects of specifying the wrong color or product. Furthermore, it will also help them verifying that each product is correctly assembled. During the implementation, PAGO encountered some problems with ESD, reading too much or too little, tags becoming partially or completely detached and a long installation time. Most of these problems have been fixed but some of them remain. There exist several reasons why PAGO implemented a RFID system, other than verifying the assembly and minimizing the effect caused by manual updating. One of those is believed to be because of the nature of the company – They only have 8h to sequence deliver the order, high turnover rates with expensive products and highly automated processes. Another reason is that RFID was a solution that solved both of their specified problems, but also supplying them with more features. Other reasons are that it will probably become a demand from Volvo in the future and that the technology is more future proof than any other technology that would have solved their problem; it is for example believed to be the successor of barcode. Major advantages, both visible and hidden, can be achieved with this RFID implementation. More reliable inventory levels could for example reduce the safety stock level, increase the level of automation and reduce the number of incorrectly assembled products sent to Volvo and thus increase their relationship

The diffusion and impact of radio frequency identification in supply chains : a multi-method approach

As a promising and emerging technology for supply chain management, Radio Frequency Identification (RFID) is a new alternative to existing tracking technologies and also allows a range of internal control and supply chain coordination. RFID has generated a significant amount of interest and activities from both practitioners and researchers in recent years. However, the factors important for its diffusion in supply chains and the impact on supply chain performance have not been well understood. Many organizations are reluctant to participate in supply-chain level RFID projects because of this lack of understanding. My dissertation proposes to help understand RFID's use in supply chains through a multi-method approach - an empirical study to understand the diffusion and impact of RFID and a simulation study to understand RFID's impact on inventory accuracy in supply chains. My first study on the factors influencing RFID adoption decision showed that compatibility, trading partner's RFID capability, trading partner power, competitive pressure, transaction volume and financial resources are significant factors for RFID adoption in a supply chain context. The second study which looked into the post-adoption use of RFID for supply chain has found that adoption cost, complexity, organizational readiness, external pressure and trading partner readiness significantly influence RFID infusion, which finally improves firm's supply chain process performance. The third study used a simulation model to examine RFID's impact on inventory management in supply chains. The key findings were that the benefits reaped from RFID heavily depend on product type which implements RFID. The above findings indicate that organizations have to carefully evaluate their RFID project with different factors identified in this dissertation to successfully implement RFID and derive its full benefits. My dissertation has contributed to RFID research in particular, and supply chain technology adoption in general, by showing the importance of trading partner issues for supply chain technology diffusion and use